893.50/9–1348: Telegram
The Consul General at Shanghai (Cabot) to the Secretary of State
[Received September 13—5:48 a.m.]
2002. Press 13th prominenced Chiang Ching-kuo’s69 address on enforcement economic measures before meeting 5,000 sponsored by Youth Army Veterans’ Association. Similar speech given on 10th before 3,000 labor representatives.
Labelling economic reforms “social revolutionary movement” which could succeed only if it had support [of] masses, Chiang warned of unprecedented change coming to Shanghai and of impending economic storm which would cause hardship to people during transition period. Referring rumors of forthcoming factory closures and commodity shortages, Chiang said Government would supply necessities for people’s livelihood and therefore immaterial if stores and restaurants catering to closed doors [sic]. He stated Government preparing supply urgently needed raw materials to factories.
Following excerpts from speech as quoted North China Daily News:
“Policy through People’s Principles is to protect law-abiding merchants. But if factories and shops tried threaten Government by suspending business, Government would never compromise with any of them. …70 When most powerful speculator in Shanghai has been defeated, nation-wide economic problem can be handled more easily. This is why we have used political force to suppress speculation and utilized economic force to guide idle funds. Many people have criticized me and said my methods not democratic, but we know what is meant by democracy. Democracy means to use force of majority to suppress minority in interests of majority. Some have said my act of confiscating hoarded goods is equivalent robbing. If this robbery is committed protect law abiding merchants and safeguard [Page 401] property and livelihood good citizens, then I would be willing to be such a robber.”
Chiang named Yung Hung-yuan who “in an instant could make tens of millions of dollars which come from blood and sweat of people” as real robber. Chiang promised terminate Shanghai as “paradise of adventurers” and return city to people.
Sent Department 2002; repeated Nanking 1546.